Verizon’s New Double Play Features Ordering Incentive

Provides $10 Monthly Credit for Year if Ordered Online

Just when you thought you’d seen all possibilities for bundled services and their pricing, Verizon Communications Inc. (VZ), has started marketing a FiOS TV and phone duo for $74.99 a month. The deal is good for one year with a $10 credit monthly if you order the content-heavy package online.

The incentive appears to be aimed at reducing Verizon’s cost of order-taking, costs that include personnel and use of often expensive toll-free numbers. The move perhaps frees up resources for functions such as customer support. The telco has claimed that demand for FiOS TV, driven by giveaways of HD TVs and digital cameras, exceeded initial demand projections.

The demand created a shortage of HD equipment such as set-top boxes and frustrated many customers who had signed up for FiOS.

Consumer product companies have used the Web to offload high-volume processes from call centers for years. Combine that with a building consumer backlash against outsourced, offshore call centers, and the Web approach could be an answer.

The Verizon double-play also is different in that it’s not a bare bones digital TV service with access to on-demand content. It includes FiOS TV Premier, with 200 channels, along with the telco’s Freedom Essentials calling package.

And, as is becoming more common of late, the TV offer includes 90 days of free access to Starz and Showtime, and four $5 or less VoD movies that must be watched within 90 days of service activation.

The package carries a one-time $29.99 activation charge. The voice service is delivered over the telco’s FTTH network. A one-time $119 termination fee takes effect in the fourth month of the year-long commitment.

Service must be ordered by Aug. 9 for activation by Oct. 21, Verizon said. The $10 credits will be initiated about 3-4 months after the package is activated.

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